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Saudi private developer Acwa Power and investment firm Saudi Brothers Commercial Company (SBCC) have signed senior financing and hedging agreements for the SR2.625bn ($700mn) Rabigh 3 independent water producer project (IWP), which they were awarded by Saudi state utility Water & Electricity Company in late December.
The plant will be built on the Saudi Red Sea coast with capacity to produce 600,000m3/d of desalinated water and is scheduled to begin commercial operation at the end of December 2021 ( MEES, 4 January ). Acwa will hold 70% equity and SBCC 30% of the Rabigh Three Company (RTC) consortium formed to build, own and operate the plant.
Acwa says the project is being funded through limited recourse ring fenced project financing with France’s Natixis, Japan’s MUFG and Saudi Arabia’s Samba and Riyad Bank being the initial mandated lead arrangers. Riyad Bank provided an equity bridge loan for the transaction in early March. Acwa offered to provide water to WEC at a cost of $0.53/m3 and will supply much of the output to the Mecca and Jeddah areas. Acwa has awarded an EPC contract for the plant to China's Sepco III, Spain’s Abengoa and France’s Veolia. (CONTINUED - 193 WORDS)